AI-generated summary. We recommend consulting the bill text for important decisions.

"Litigation funding" — sometimes called lawsuit lending — is when a third-party company gives money to someone involved in a lawsuit in exchange for a cut of any future settlement or judgment. This bill significantly expands and restructures Utah's existing rules governing these arrangements by creating two separate categories: consumer agreements (where an individual plaintiff receives funding) and commercial agreements (where a business or other party to a lawsuit receives funding). All providers must register with the Division of Consumer Protection, and the bill extends the window for consumers to cancel an agreement penalty-free from 5 to 10 business days. Agreements must be written in plain language, completed before signing, and include specific disclosures; providers are barred from paying referral fees to attorneys or health care providers, influencing legal decisions, or entering into any funding arrangement with foreign entities of concern.